The Risks of Smart Automation Systems and Their Effects on Internal Audit

Abstract

Smart automation is the development of robotic process automation by adding learning and decision-making skills with artificial intelligence. The aim of the study is to examine the effects of smart automation systems on the risk management and internal audit processes of enterprises. For this purpose, evaluations are made on the main risks of smart automation systems, the challenges faced by internal audit in the face of new risks and how these difficulties can be overcome. The risks brought by smart automation; technological risks, regulatory and privacy risks, ethical risks, cyber risks, corporate risks and financial risks. The main challenges faced by internal audit due to smart automation risks are; the growing competency requirements relate to the role and position of internal audit in the adoption of smart automation, and the methods for monitoring and auditing smart automation. Finally, it is recommended to develop internal audit competencies in line with emerging technologies, evaluate flexible sourcing models, involve internal audit in the early stages of adopting smart automation, and develop data analysis capabilities.